Investor Presentaiton
37
Shares against pre-incorporation/ pre-operative expenses
(October 24,2016)
ā A WOS set up in India by a non-resident entity, operating in a sector where
100 % foreign investment is allowed in the automatic route
may issue
equity shares or preference shares or convertible debentures or warrants to
the said non-resident entity against pre-incorporation/ pre-operative
expenses incurred by the said non-resident entity up to a limit of five
percent of its capital or USD 500,000 whichever is less, subject to
conditions.
ā Within 30 days from the date of issue, but not later than one year from the
date of incorporation or such time as RBI or GOI permits, the Indian
company shall report the transaction in the Form FC-GPR to RBI.View entire presentation